Swiggy Set to File Confidential IPO Papers, Plans $1.25 Billion Public Offering

• ByStartupStory     |    April 26, 2024

Swiggy is gearing up to file its draft papers for an Initial Public Offering (IPO) confidentially with the Securities and Exchange Board of India (SEBI) within the next 2-3 days, according to sources familiar with the matter. This approach allows the company to keep details of its business private until later stages of the IPO process, a strategy first made available by SEBI in November 2022.

The decision comes shortly after Swiggy’s shareholders approved a $1.25 billion IPO plan. The Bengaluru-based food tech giant aims to raise about Rs 3,750 crore (approximately $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) from an offer-for-sale (OFS), as per earlier reports from media sources.

Swiggy’s move towards a confidential filing marks it as the second major new-age company to opt for this method following SoftBank-backed Oyo. Tata Play (formerly Tata Sky) was the pioneer in using this route shortly after its introduction.

“We do not comment on any market speculation or rumours. We will update you on any development as and when it is ready to be shared in the public domain,” a Swiggy spokesperson stated, maintaining the company’s policy on market speculations.

In preparation for its IPO, the company plans to raise around Rs 750 crore from anchor investors. The IPO is expected to launch earlier this year, following its substantial fundraising activities including a $700 million round in January 2022 which valued the company at $10.7 billion.

Swiggy’s financials reflect a challenging but growing business environment. In the nine months leading to December 2023, the company reported a loss of $207 million on a revenue of $1.02 billion. This performance aligns closely with the company’s revenue in fiscal year 2022-23 which was reported at $1.05 billion. Despite a rising revenue of Rs 8,625 crore in FY23, representing a 45 percent increase, Swiggy’s net loss widened to Rs 4,179 crore from Rs 3,629 crore the previous year.

In contrast, Swiggy’s main competitor, Zomato, showed a 66 percent revenue increase to Rs 7,761 crore in FY23 and narrowed its net loss to Rs 971 crore. Zomato has also been profitable in the past three quarters and recently saw its valuation surpass $20 billion as of April 26.

Group CEO Sriharsha Majety highlighted the intensive preparation for the IPO, stating, “IPO preparation have been underway and I was spending more time with the founders of listed companies to operate like a publicly listed company.”

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